Fact Pattern 42-2​ Ben, an Accountant for AirLift, Inc., a Ride Service, Learns

question 66

Multiple Choice

Fact Pattern 42-2​
Ben, an accountant for AirLift, Inc., a ride service, learns of undisclosed company plans to distribute a new app. Ben buys 10,000 shares of AirLift stock. He reveals the company plans to Carly, who buys 5,000 shares. Carly tells Don, who tells Erwin, and each buys 1,000 shares. They know that Carly got her information from Ben. When AirLift publicly announces its new app, Ben, Carly, Don, and Erwin sell their stock for a profit.
-Refer to Fact Pattern 42-2. If Ben is liable under the Securities Exchange Act of 1934, it will be because the information on which he based his purchase of AirLift stock was​

• A) ​a forward-looking forecast.
• B) ​not material.
• C) ​not yet public.
• D) ​not yet true.

Analyze the effect of storage costs and interest rates on commodity investments.

Recognize the importance of timing in maximizing the value of an asset.

Understand the effects of inflation on the real interest rate and its impact on consumption decisions.

Develop an understanding of arbitrage opportunities in well-functioning markets.

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Definitions:

Stability of Personality

The concept that an individual's basic personality traits tend to remain relatively consistent throughout adulthood.

Share Confidences

The act of exchanging private information or feelings with another, often building trust and intimacy in a relationship.

Marital Problems

Issues or conflicts between married partners that can strain their relationship.

Receive Advice

The act of accepting guidance or recommendations from another person, usually in effort to make decisions or solve problems.